 Actual situation on August 13, 2024, in the area of land up for auction in Thanh Than village, Thanh Cao commune, Thanh Oai district, Hanoi city. (Photo: Hung Vo/Vietnam+)
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Last weekend, around 1,600 people participated in an auction to own 68 land plots in the “desolate” area of Thanh Cao commune, Thanh Oai district, Hanoi city. The results set a “new record” for land prices in the outskirts of the capital, with winning bids ranging from 55 to 100 million VND per sq.m, 6 to 8 times the starting price depending on the location, causing a frenzy among investors.
Notably, immediately after the auction, many plots of land were resold at premiums ranging from 300 million VND to 1 billion VND. However, after three days of price gouging without catching the wave of investor interest, most of the auctioned land plots were “dumped” by speculators and real estate brokers, with the premium lowered to 90 million VND to 200 million VND per plot.
Land prices “dancing” to the tune of speculators
According to our reporter’s investigation, after the auction of 68 land plots in the Ngõ Ba area (belonging to Thanh Than village, Thanh Cao commune) on August 10, many plots that won high bids were immediately resold at premiums ranging from 300 to 500 million VND per plot. This information quickly spread across various online media platforms.
For example, plot Lk05-5, with an area of 85 sq.m and a winning bid of nearly 55 million VND per sq.m, equivalent to more than 4.6 billion VND, was resold at a premium of 500 million VND. This plot was among the lower-priced groups compared to other plots.
For the plots in the three outer rows, facing the main road, including LK01, LK02, and LK03, the winning bid prices were the highest. Specifically, the winning bid prices for plots in row LK01 ranged from nearly 69 to 92.2 million VND per sq.m; row LK02 ranged from 82.7 to 89.9 million VND per sq.m, and row LK03 was about 74.3 to 100.5 million VND per sq.m.
After the auction, these plots were advertised by brokers at premiums of up to 500 million VND. The plot with the highest winning bid of 100.5 million VND per sq.m (eight times the starting price) was resold at a premium of 1 billion VND by brokers.
However, the writer’s actual observation on August 13 (three days after the record-breaking land auction) showed that the auctioned land is adjacent to the Binh Minh – Thanh Cao inter-communal road. One side is a sparsely populated residential area with ponds and ditches surrounding it, and the other side is an abandoned field.
 Real estate brokers advertised the land plots with premiums ranging from a few hundred million VND to 1 billion VND per plot, depending on the location. (Photo: Hung Vo/Vietnam+)
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At 3:00 PM on August 13, when the writer (posing as an investor interested in buying land in the area) was seen wandering around the auctioned land several times, about 4-5 real estate brokers approached and continuously solicited the “investor.” According to the “final” prices quoted by the brokers, all land plots with an area of 85 sq.m/plot in rows from LK01 to LK06, which initially had a premium of 500 million VND, had their premium lowered to 200 million VND per plot.
Surprisingly, as the writer was about to leave, a woman from a car with license plates from Hai Duong province quickly approached and offered to sell seven land plots that her family had won at the auction. Notably, among these seven plots was the one with the highest winning bid of 100.5 million VND per sq.m (which brokers had previously advertised with a premium of 1 billion VND); now, the premium was only 150 million VND.
“All seven plots of land are owned by my family. These plots are all in prime locations. If you’re interested in the plot with the highest winning bid of 100.5 million VND per sq.m, I can let it go for a premium of just 150 million VND. For the other plots, I’ll only ask for a premium of 90-100 million VND,” the woman insisted.
Many land plots at risk of being forfeited
Sharing his thoughts with the media about the land auction that caused a stir in the real estate market, Mr. Nguyen Trong Khien, Vice Chairman of the People’s Committee of Thanh Oai district, said that the plots of land that won the auction at high prices were all located along the main road, including the plot that won the auction at a price of more than 100 million VND per sq.m. Even the lowest-priced plots were over 50 million VND per sq.m. He added that there was nothing unusual about the auction, and the process and event were conducted with absolute safety.
Nguyen Cong Quang, Director of the Land Development Fund Center of Thanh Oai district, also emphasized that this was the district’s first auction of the year. The total amount of money collected by the district from the auction is estimated at more than 404 billion VND, with a difference of 349 billion VND from the starting price (about eight times higher).
Meanwhile, data from Batdongsan.com.vn in Q2/2024 shows that compared to the average asking price in Thanh Cao commune (after an increase of about 80% over the past four years – from 15 million VND per sq.m in 2020 to 27 million VND per sq.m in Q2/2024), the winning bid prices of 63-100 million VND per sq.m for the plots in the August 10, 2024, auction are still 2.3-3.7 times higher.
Failure to quickly flip the land plots may result in forfeited deposits. (Photo: Hung Vo/Vietnam+)
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Mr. Quan, a real estate investor in Hoang Mai district, shared: “Land auctions are mainly the playground of speculators. In reality, the tactics used by speculators and brokers during the recent land fever episodes were aimed at profiting. Groups of land hoarders often use auctions in the area to drive up prices and create a new price level to sell surrounding invested lands. If the won plots cannot be sold quickly, they may choose to forfeit the deposit.”
Associate Professor and Dr. Dinh Trong Thinh, an economic expert, also stated that the winning bid price of 100 million VND per sq.m reflected the “heat” of the land auction market in the outlying districts of Hanoi. However, in terms of value, the price is too high because the surrounding social infrastructure is limited.
According to economic expert Dinh Trong Thinh, the unrealistically high price could be due to speculators driving up the price. “After hoarding land beforehand, they inflate the price to create a new price level to sell off their invested lands in the surrounding areas. Therefore, the possibility of deposit forfeiture may occur,” Mr. Thinh predicted.
With his extensive experience in researching the real estate market, Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, forecasts that from Q2/2025 onwards, land will enter a recovery trend. The current waves are only localized in certain areas.
According to Mr. Nguyen Quoc Anh, there are three main factors that significantly impact the land market: the region’s economy, infrastructure planning, and population and connectivity with other localities. Additionally, after a challenging period for the market, buyers and real estate investors will generally be more cautious than before.
“Therefore, investors should thoroughly research the market and refer to price fluctuations through objective information sources,” advised Mr. Quoc Anh./.
Hung Vo
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